VFS Technology Refresh Program

The Challenge: Keeping Pace with Technology & Managing IT Obsolescence Risk
Most customers require about three years to handle the technology life cycle, which includes: identifying, sourcing, and acquiring technology; time for IT professionals to install it; time for users to use it; time for the accountants to depreciate it over three years. Without major changes in the money supply, Financial Accounting Standards Board (FASB) rulings, and Federal tax law, the three-year cycle is not likely to change. Since technology changes every 9-18 months, however, customers may be working with third- or fourth-generation products at the end of a standard three-year life cycle. Even worse, three-year-old equipment may no longer be supported by the manufacturer, has higher maintenance costs, and loses its competitive advantage or industry life.

The Solution: Technology Refresh Program
VFS leases answer this dilemma with the technology refresh program. When evaluating new equipment, VFS professionals base our financial planning on the standard three-year "useful life" schedule, but look for penalty free leasing options that let customers refresh (upgrade) hardware and software within that timeframe. The technology refresh program affords customers a flexible upgrade window (e.g., six months) during which they can opt to upgrade to current technology without penalty. Many customers, for example, choose to upgrade during either an 18-to-24-month window or a 24-to-30-month window. Upgrade windows, however, are flexible and structured to meet technological and business needs.

Lease payments are based usually on 24- or 36- month schedules since these terms provide the lowest monthly costs and most flexibility for future upgrades. At the time of the technology refresh, customers realize at least a 1.5X improvement in equipment performance, and following the technology refresh, payments are guaranteed not to increase by more than 20%. In essence, the technology refresh program ensures an affordable, competitive IT advantage for your business and reduces the risk of IT obsolescence.

Lower Risk, Lower TCO, Energy Savings, Fewer Stranded Assets
The VFS technology refresh program eliminates the risk of equipment obsolescence and replaces older equipment with more energy efficient IT assets. Technology replacement is according to business needs for sustainable competitive advantage. The technology refresh program facilitates a disciplined approach to equipment life cycle management, which leads to lower maintenance costs and lower TCO. Since the IT support staff spends less time updating or repairing older equipment, productivity improves dramatically. Finally, a structured refresh program reduces stranded IT assets in your organization.